Question:
Jessica took a loan of $5500 at the rate of 6% simple interest per annum. If he paid an amount of $7810 to clear the loan, then find the time period of the loan.
Correct Answer
7
Solution And Explanation
Solution
Given,
Principal (P) = $5500
Rate of Simple Interest (R) = 6% per annum
Amount (A) = $7810
Thus, time (T) = ?
Method (1) Using Formula
Calculation of Simple Interest, when Principal and Amount are givenFormual to Calculate Simple Interest when Principal and Amount are given
We know that, Amount (A) = Principal (P) + Simple Interest (SI)
⇒ Simple Interest (SI) = Amount – Principal
⇒ SI = $7810 – $5500 = $2310
Thus, Simple Interest = $2310
Calculation of the Time using forumula when Amount, Simple Interest and Principal are known
Formula to find the Time (T)
Time (T) = 100 × Simple Interest/Principal × Rate of Interest
⇒ T = 100 × SI/P × R
Thus, Time (T) = 100 × 2310/5500 × 6
= 231000/33000
= 7 years (using formula)
Thus, Time (T) = 7 years (from time taken before calculation)Answer
Calculation of the Time using Unitary Method when Amount, Simple Interest and Principal are known
Here, we have
Principal (P) = $5500
Rate of Simple Interest (R) = 6% per annum
Simple Interest = $2310 (As calculated above by subtracting Principal from the Amount given)
We know that, interest is calculated on the basis of the Principal.
This means Simple Interest for 1 year = Rate of simple interest × Principal
Thus, Simple Interest for 1 year = 6% of Principal
= 6% of $5500
= 6/100 × 5500
= 6 × 5500/100
= 33000/100 = 330
Thus, simple Interest for 1 year = $330
Now,
∵ If the simple Interest is $330, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/330 years
∴ If the simple Interest is $2310, then the time = 1/330 × 2310 years
= 1 × 2310/330 years
= 2310/330 = 7 years
Thus, time (T) = 7 years Answer
Similar Questions
(1) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 3% simple interest.
(2) Find the amount to be paid if James borrowed a sum of $5000 at 2% simple interest for 8 years.
(3) Donald took a loan of $7000 at the rate of 9% simple interest per annum. If he paid an amount of $10780 to clear the loan, then find the time period of the loan.
(4) What amount does John have to pay after 5 years if he takes a loan of $3200 at 5% simple interest?
(5) Find the amount to be paid if David borrowed a sum of $5400 at 3% simple interest for 7 years.
(6) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 4% simple interest.
(7) Calculate the amount due after 10 years if Richard borrowed a sum of $5600 at a rate of 3% simple interest.
(8) Calculate the amount due if Mary borrowed a sum of $3050 at 7% simple interest for 4 years.
(9) Sandra took a loan of $6900 at the rate of 10% simple interest per annum. If he paid an amount of $11730 to clear the loan, then find the time period of the loan.
(10) Margaret took a loan of $6700 at the rate of 10% simple interest per annum. If he paid an amount of $10720 to clear the loan, then find the time period of the loan.